Judge Orders Settlement Talks In $112M Ariz. Hotel Loan Row

Law360, New York (September 13, 2012, 6:04 PM EDT) -- A New York federal judge on Thursday sent lender iStar RC Paradise Valley to initiate possible settlement talks in its contract dispute against the owners of developer Five Star Development Resort Communities LLC over a $112 million Arizona hotel loan.

U.S. District Judge Laura Taylor Swain set a pretrial schedule in a Manhattan hearing that could potentially see trial proceedings for the case against Five Star owner Jerry C. Ayoub and wife Claudia Ayoub begin next year, but which ordered the parties to first have settlement...